TrendForce: Major Cloud Providers' Capital Expenditures to Exceed $1.5 Trillion by 2027

Research firm TrendForce has updated its projections for the capital expenditures of nine major global cloud service providers: Google, Amazon, Meta, Microsoft, Oracle, ByteDance, Tencent, Alibaba, and Baidu.

The latest estimates indicate that these companies' total capital spending will exceed $957 billion this year, marking a 106% increase year-over-year. By 2027, these expenditures are expected to rise by an additional 60%, reaching $1.531 trillion.

This upward revision is attributed to increased server prices, component shortages leading to higher quotes, and some upstream suppliers requiring advance payments. The analysis projects AI server shipments to grow by 32.2% this year, capturing 74.9% of the total server market by value.

Looking ahead to 2027, AI server shipments are expected to increase by nearly 36%, with their production value reaching approximately $920 billion. The overall server market's production value is projected to surpass $1 trillion next year.